\n<\/p>\n
Bank of America has set a striking new price target for gold along with a deadline.<\/p>\n
The call comes as uncertainty surrounding Federal Reserve leadership and broader monetary policy builds.<\/p>\n
Just last month, U.S. President Donald Trump chose Kevin Warsh as the new Federal Reserve chair to replace Jerome Powell. His appointment led to a sharp sell-off in gold.<\/p>\n
Related: Fed’s Powell Sees Bitcoin as Gold Substitute<\/strong><\/p>\n Warsh has been considered generally hawkish on policy. He was a Fed governor\u00a0between 2006 and 2011 and was known to favor holding rates higher for longer, especially in the years after the global financial crisis.<\/p>\n In recent days, however, he has sounded more dovish. This has triggered discussions about which direction his policies would go.<\/p>\n On Feb. 18, the Federal Reserve released the FOMC minutes that indicated the rates as unchanged at\u00a03.5%-3.75%.<\/p>\n Gold traditionally rallies during periods of policy uncertainty, inflation fears, and currency weakness. And right now, several of those forces are aligning.<\/p>\n However,\u00a0when the news broke about his appointment on Jan. 30, gold and silver went through major corrections. Gold price fell 1.55%, at one point dropping as low as $4,893. Silver also dropped by 0.33%.<\/p>\n But for Bank of America, the new target for gold is $6,000 per ounce within the next 12 months, as reported by CNBC.<\/p>\n This would be an over 15% increase from its current price of\u00a0$5,177.76, as of Feb. 25.<\/p>\n But history has shown that gold price can surge higher than that. In fact, it has climbed by\u00a076.89% the past year.<\/p>\n Silver\u2019s sharper move also reflects this dynamic.<\/p>\n Historically, silver acts as a higher-beta version of gold, rising faster during bullish phases but also facing more near-term volatility. The bank notes silver faces some immediate risks but sees potential for a rebound above $100 per ounce.<\/p>\n Gold\u2019s resurgence inevitably revives comparisons with Bitcoin.<\/p>\n A few days ago, Bloomberg senior ETF analyst Eric Balchunas argued that the anxiety among Bitcoin holders is \u201cvery short-sighted.\u201d Since 2022, Bitcoin has surged 429%, compared to gold\u2019s 177%, silver\u2019s 350% and the Invesco QQQ\u2019s 140%.<\/p>\n In his words, Bitcoin \u201cspanked everything so bad\u201d in 2023 and 2024 that other assets such as gold and silver, even during their best years, have struggled to catch up.<\/p>\n<\/p><\/div>\n He argued that Bitcoin quickly priced in its \u201cinstitutionalization\u201d narrative following ETF approvals and broader Wall Street adoption. Now, it is taking what he calls a \u201cbreather\u201d to align price action with underlying fundamentals.<\/p>\n Related: Age-old wealth, new tech: Unpacking the choice between bitcoin and gold<\/strong><\/p>\n If gold is rising on concerns about policy uncertainty and long-term currency stability, Bitcoin theoretically sits in the same thematic bucket.<\/p>\n Bitcoin\u2019s supply is capped at 21 million coins, making it structurally scarce. Like gold, it cannot be printed. That has positioned it as a potential hedge against currency debasement.<\/p>\n Yet Bitcoin has struggled to capitalize fully on that narrative in recent months. After declining about 20% over three months, it was trading near $69,069 following a 7.1% daily gain.<\/p>\n Historically, liquidity cycles and macro fear do not impact all hard assets simultaneously. Gold often leads during defensive positioning phases. Bitcoin, as a higher-volatility asset, can follow once conviction builds or liquidity expands further.<\/p>\n